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tv   Wall Street Journal Conference  CSPAN  June 25, 2011 3:30pm-4:00pm EDT

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to come up with the way to get ideas from the drawing board to the manufacturing floor to the marketplace as swiftly as possible. it will help create quality jobs and make our businesses more competitive. we also have a broader mission. it is to renew the promise of warmer regions of american manufacturing, to help make sure america remains in this century what we were in the last, a country that makes things. a country things, a country that out-innovates the rest of the world. in pittsburgh, i am hopeful about the future. i am hopeful about a company that reinvigorated many factory and what started as a small trade school is now a respected university. we have shaped our own destiny. i am absolutely confident that
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is what we are going to do one more time. have a great weekend. >> hello. i am congresswoman renee ellmers dollars. i am speaking with you from the house economic committee. we hear from job creators. these are leaders and entrepreneurs to come to washington to explain how tough things are right now. their stories are different, but their message is the site. uncertainty, burdensome regulations, and the fear of higher taxes are making it harder -- harder to create jobs and stay afloat. if i were not in congress, i would be sitting next to them. my husband and i own a small medical practice. we have seen how the government over reach can hurt a family- owned small business. we relied on the same dahlias that helped get our business of the ground, freedom and opportunity and responsibility.
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the job creators we hear from to not want a handout. they are asking us to get government out of the way. republicans have put forward a job creation plan that would do just that, a plan for america also job creators. it lives up to its name. our plan starts with reducing the regulations that businesses face. instead of knee-jerk reactions to high gas prices, we propose expanding domestic energy production to help lower costs and create jobs to make us more competitive. we want to open new markets to american-made goods. we are ready to build on the budget we passed to pay down the deck and see that washington was within its means. kicking the can down the road will only destroy more jobs by rattling confidence and causing more uncertainty over our fiscal condition. these are just some of the solutions included in our job
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creation plan. you can check out all the details act we have already made some headway. we approved a bill on energy production. this legislation will make our domestic energy resources available while chlorine gas prices and creating thousands of jobs. -- while lowering gas prices and creating thousands of jobs. we hope the senate will pass this legislation. the democrats that run washington say we should stay the course and keep spending money we don't have in the name of stimulus. these washington policies have not worked. they have only made matters worse. there are now 2.3 million more people looking for work and there were in the months when president obama took office. americans or promised the stimulus would keep unemployment below 8%. it is now more than 9%.
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you sent us here to focus on jobs. we must show leadership worthy of your trust. that is why we are inviting president obama to work with us and help in that our job creation plan. washington is at its best when it is listening to the american people. our people are at their best when they are working, prospering, and laying the foundation for the greatest days that still lie ahead. i hope you will check out and let us know what you think. thank you for listening. >> in our series of interviews with republican presidential candidates, we interview texas republican ron paul. he discusses his strategy for winning the gop nomination and his years as a doctor, service in the military, and his views on congress. " on c-o the white house
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span. >> the latest c-span the bands from the campaign trail and twitter fees and facebook updates on -- the latest on c- span from the campaign trail. visit us at >> remarks from the house ways and means committee chairman on with the congress will take on the u.s. tax code before next year's election. it is part of the chief officers network conference. this is a little over one hour.
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>> secretary geithner has taken some time out from his trouble- free existence to join us. i noted the other day that commencement exercises happened at dartmouth. you would think they could have invited such a distinguished
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alumnus as you to be the commencement speaker. instead, they invited conan o'brien. he described a visiting dartmouth -- you are going up on friday to conduct a seminar at dartmouth. i will tell you what he said about dartmouth when you were student debt. he said dartmouth was a different place back then. after asking the blacksmith for directions, i came to this beautiful campus. no dormitories had been built yet. i stayed with a family of fur traders. it's snowed heavily during my visit and i was trapped there -- it snowed heavily during my visit and i was trapped there for them a month. congratulations for surviving hanover, new hampshire. good luck on your return visit.
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i have a lot of questions to ask you. i would start by reading the tea things that were set on this stage and get you to respond to them. one comment was, the most important thing government can do to promote innovation is to get its own house in order. the second related point. it was unimaginable a few years ago when the u.s. would be talking about a default on its debt. the question for you is, can the government get its house in order and will we spend the rest of the summer worry about the u.s. defaulting on its debt? >> we are going to avoid a default crisis. no doubt about that. it is unthinkable that people would contemplate that as a viable strategy for the country. it is not going to happen. we are going to have a bipartisan, comprehensive, debt reduction framework. the question is, what is going to be the shape of that
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framework? we are trying to negotiate something that will be good for the economy in the short term and the long run. what that means is we want to have a framework that restores gravity for our long term fiscal position. a lot of things do not do that so precipitously. we want to do it in a way that creates some room for the government to do things. there are only so many things the government can do to improve incentives for investment. we want to make sure we make investments for education and infrastructure. we want to do things that are going to be good for growth in the long run. we have a good chance to do that. these negotiations, despite the political moment, are a pragmatic and realistic and productive spirit. they will make the kind of
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compromises you need to make a broad deal work. >> you are talking about down payment now and longer-term deal later? >> we do not see a realistic path of solving all of this at once. it is not possible. we are trying to do a framework where there is substantial downpayment where there are spending reforms and debt reduction over a 10 year. period of time. targets and traders will force the remaining deficit reduction to happen so that we do not fall behind the curve. we are looking at a debt cap in the constraint that says we have to get our debt down to the point where debt to gdp is falling over the next three-five years. if congress cannot act, we want an automatic enforcement mechanism that locks in the
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deficit reduction savings. >> will the package includes entitlement reductions and savings? >> for it to work for the economy, you need to have a balanced and work. if you try to do the magnitude of deficit reduction that we need over the next 10 years, to try to do that only on spending cuts parts of the budget would be irresponsible and not achievable political. -- achievable politically. you need a balanced plan that has modest revenue increases in tax reform and some near-term spending savings and long-term entitlement reforms. if you look at the structure of our budget and what is driving these long-term deficits, you get the stick -- the scale of challenges we need in terms of long-term growth.
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you cannot do it through spending reductions concentrated on narrow slices of government where it depends on the government doing things only the government can do. >> $45 trillion over 10 years, is that bipartisan? >> important things that happened over the last six months in this town. it is hard to appreciate from a distance. you had republicans in the house, the president of the united states, a bipartisan deficit-reduction plan, all agreeing on a broad target for deficit reduction in that magnitude of $45 trillion over years.-first 3-5 once you have both sides of the aisle committed to that objective, it is all about the composition of the objectives. if you look at 1996, we had a
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valuable bipartisan deficit- reduction plans in place. the most important plan -- imported change when you have both sides involved and the president saying you have a the with-we need a balanced budget, you have a chance to do some -- the most important plant, when you have both sides and about that the president saying we need a deficit-reduction plan, you have a chance to do something. we borrow 40 cents for every dollar we spend now. congress has to raise the debt limit before we run out of that room. there is broad acceptance by the leadership of that constraint. it is helpful to have senator o'connell and the majority leader of the house all -- senator mcconnell and the
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majority leader of the house all saying that we need change. they recognize the danger of taking it too close to the edge. >> what does your gut tell you? >> we are meeting every day for the maker of this week. we are making a lot of progress in fleshing out the shape of a down payment with this broader framework of constraints, a debt cap, and forced mechanism. we are getting closer. we need to make some progress this week to give everybody more confidence that there is a framework that has the votes. what matters is how we get the votes that passes the house and the senate. [inaudible] >> the good news is that there are countries that have worse
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problems to deal with. breeze comes to mind this morning. this baby d-day -- this may be d-day in determining if a crisis will be averted in greece. >> it is your's problem to solve. we are actively involved -- it is europe's problem to solve. we had two g-7 calls over the weekend on sunday and monday. i spent a lot of time on the phone with the principals in europe. they have to find a solution that works for the politics of europe now. that me say a couple of things about what is important as we manage through this. it will be helpful to have europe speak with a clear, more
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unified voice in this strategy. it is hard for people who invest in europe to understand what the strategy is when you have so many people talking. the simple rule of crisis management is that you want to have a simple, clear, unified, declared the strategy. that would be helpful. they have a substantial arsenal and fire wall that they have laid out. we want to make sure -- they want to make sure that is available to be deployed to do the kind of think they need to do to make this process work, to make sure banks and can be recapitalized when they need capital. no economy can function without a banking system that is able to fund and to make sure countries undergoing these reforms have a financial backstop to make these reforms work. these countries like greece and ireland and portugal and spain are taking a difficult an
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ambitious reform plans to fix the fiscal mess they created to make sure they stanton and restructured their financial system and figure out a way to grow. those things are going to take years, not months. they are not going to work unless there is a broad financial backstop behind them. they have the ability to avoid a short-term crisis. they are still feeling their way toward a more comprehensive strategy. >> what should be the confident voice explaining europe to the world? >> they have a complicated set of institutions. they have to agree on a strategy and have clarity and communicate that to the market so people understand what the basic plan is. >> what was the american masses in those g7 phone calls over the weekend? >> we want to make sure this
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broader financial arsenal they constructed last summer after watching europe start to burn -- we want to make sure that the arsenal is available to be deployed to do the things necessary for them to get out of this. where necessary, there is capital available to recapitalize banks. they are going through another stress test to assess what the capital needs are. it wants to make sure they can be filled and that there is a broader financial backstop to help countries going through reforms. >> isn't somebody going to have to take a haircut? is it going to be banks or german taxpayers who end up doing that? >> the question. there is no easy answer to that question. ultimately, for these things to work, you have a set of reforms in place where people can look and say, if the government
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sticks to that path, there is going to be enough rope and resources to meet their commitments over time. that is something that you can only turn confidence with overtime. people can look at what the political systems of those countries can deliver and if there are resources behind them to be a force that process during a transitional period bank -- to enforce that process duryea transitional period -- during a transitional period and. . the european leaders have been grappling with that for more than one year. they are working through what the next set of solutions are going to be. they have to make that choice. i want to emphasize that what those governments are committing to and what they have already delivered in many ways -- they
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have many years to go -- are substantial and difficult, politically, difficult set of economic reforms. there is no path for them ahead without going through those reforms. >> is there a fire wall between greece and spain and italy and ireland? or is the contagion high right now? >> it is important that the financial arsenal they put in place is available and employed -- of billable and deployed. most important -- available and the ploy did -- and deployed. spain has put in place a set of reforms that has distinguished it from some parts of europe. they want to make sure they can sustain that. you need a broad financial
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backstop that people view as credible, that clean commitment to make sure the government and the bank systems can fund as they go through these reforms. >> in europe survive this moment and this crisis? >> i do. there is no reason why europe cannot manage these problems in the way they have laid out. they are absolutely worried about how to make sure they have a set of policies for our coordinating fiscal policy and budget policy. the absence of those is one reason why they are in this mess. they would like to fix that. they have been trying to build the architecture of a broader fiscal framework to provide that. there is no reason why they cannot preserve the basic element. >> let me pull you back closer
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to home and asked about a topic that is of particular interest, tax return, -- tax reform. as an observer of washington, i have seen a consensus emerging that the corporate tax rate, the corporate tax system is probably not sustainable in the longer run and needs to be addressed. you have said that yourself a lot. how close are we to genuine corporate tax reform? >> the tax base in the united states is not something we should be living with. we have a bad combination of high statutory rates. it creates distortion. a huge diversion in the tax rates across the u.s. business community. it is a politically driven tax system that fails that basic test of letting the economics of
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business allocate investment. we should change it. it has terrible uncertainty about it, having this uncertainty around which tax rates get extended. he won a system that lowers that statutory rate and creates more uncertainty on conditions that make the u.s. and more attractive place -- we want a system that lowers the statutory rate and create more certainty and conditions that make the u.s. more attractive to invest. how can we make it more likely that american companies and foreign companies are investing in creating things in the united states. it is a difficult thing to do. there is a question about what is going to be feasible in the near tampa the best in the near term. we have been putting together
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things that meet that basic test. we decided we had to wait to deploy that until we were through the budget negotiations we are going through right now. those require all of the oxygen the town has at the moment. we want to get that right. when we get that done, we can begin the process of corporate tax return. >> you were describing a deficit deal that gets you past the debt ceiling, the one that vice president joe biden is running. this is not on the table in those conversations. >> we are not doing a detailed redesign of the corporate tax system as a whole. we are trying to figure out how to set up a long-term fiscal arrangements. what we get this broader deficit reduction agreement done -- once we get this broader deficit- reduction agreement done, we can move on to cope with tax return.
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-- corporate tax reform. the risk for the american business community is that that will combine youtube -- confined to years of unnecessary delay. we are probably going to have to do a broader based tax reforms. the ones done under president reagan are going to take years. it would be good for the economy, for this economy at this time to find things we can do together in the near term to strengthen investment in the united states in the near term. passing trade agreements is another thing. there's no reason we can do those things. >> you get the deficit deal done and it is august or september,
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you are one year out from the presidential election. can you do " with tax reform in a campaign -- can you do " or attacks with form in a campaign -- corporate tax reform in a campaign and by matt? environment? >> these are not difficult things in comparison to the magnitude we have just been through. the president came in and prevented a second great depression. there were incredibly difficult things required to make that possible. trade agreements are not nearly as difficult as those things. we should be able to make some progress on those fronts. >> if you had a blank sheet of
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paper and you could do the corporate tax reform, what would you do about the rate? >> i will deprive you of detail on that at the moment. we do not want to jeopardize the potential for progress on this. my view is for this to get moving. somebody has to lay out a proposal with options that people can look back and decided they have a better idea. the right test should be, what is going to strengthen incentives for investing in the united states so that we are improving the chance that more of the huge growth and demands we are going to see from emerging markets is matched by things people are created and building in the united states. corporate tax reform is part of that.
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that is why education and infrastructure matters so much. that is why the other things created through innovation matter so much. >> this process will be kicked off by you. >> it may be. we want to figure out an approach that maximizes the chance for legislating something. we will choose the tactics based on how the playing field looks once we get through the fiscal negotiations. >> you have an idea that is on the shelf and ready to go. >> we have a sensible package with some good options for people to look at. people should look at the trade- offs. >> you want to endorse christine for the director general of the
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imf? >> we have two credible candidates for this position. we want to have the succession resolved quickly. i am confident we will have somebody that will come with experience, technical experience and credibility, but will be able to command respectability. we want to get it done quickly. >> you should have a crack at the secretary. alan, do you want to be oprah? >> >> and much of the challenge of crafting a long-term solution to our budget is not about the numbers, but about broader policies? defunding epa, health


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